The Ministry of Defence (MOD) has announced a landmark 10-year support arrangement for the RAF’s Typhoon jets that could see more than £500M saved and reinvested in the aircraft.

Announced today at Farnborough International Air Show (FIAS), the arrangement with BAE Systems is expected to be worth £2.1 billion.

The award will sustain hundreds of high value jobs at sites across the UK, including at Typhoon’s Main Operating Base at RAF Coningsby and BAE Systems’ site in Warton, Lancashire.

Minister for Defence Procurement, Philip Dunne said:

This is an exciting, innovative support contract for our Typhoon aircraft. It will not only provide more efficient support and availability for our Typhoon fleet. But it will also help ensure Typhoon continues to meet the RAF’s future operational requirements, including from 2019 undertaking the air-to-ground roles currently performed by our Tornado jets.

This major contract sustains hundreds of jobs while representing a substantial change in the way support is provided, optimising and driving efficiency into current ways of working.

It aims to deliver more than a third on savings on current support and maintenance costs; of which over £500M million could be reinvested to continue upgrading Typhoon’s capabilities.

The RAF’s Typhoon jet is already a formidable, battle winning aircraft, which is enhanced by cutting edge weapon systems. These new savings, generated through the Typhoon Total Availability eNterprise (TyTAN) agreement, will enable future capability upgrades for the aircraft, ensuring it continues to provide world-class air power capability for the RAF.

The MOD remains committed to driving down support costs together with our industrial partners. TyTAN will, for the first time in the MOD, allow recycling of support funding savings into the Typhoon project to increase future capability, making the aircraft even more formidable and affordable, reducing its cost of ownership.

This 10-year Typhoon support arrangement is the product of close cooperation between MOD and Industry, who are both focussed on maximising efficiencies to identify savings and re-invest these in the aircraft.

This innovative deal not only shows how committed we are to providing state-of-the-art equipment for our Armed Forces, but how we are also providing the taxpayer with value for money.

The Typhoon force is currently operationally based at RAF Coningsby (Lincolnshire), RAF Lossiemouth (Scotland) and the Falkland Islands, where the aircraft provide Quick Reaction Alert.